Age 40 Not Too Late to Prepare Retirement Funds, Here's How

Turning 40 is an opportune moment to begin planning for retirement, offering individuals approximately 17 to 20 years to build assets and investments before reaching retirement age. Panji Irawan, President Director of PT Bank Mandiri Taspen (Bank Mantap), noted that many people only consider retirement planning as they near the age of retirement, despite the significant financial advantages of starting earlier.

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We will soon be launching the 'Life Begins at 40' program. We see age 40 as still the right time to start preparing for retirement.

"We will soon be launching the 'Life Begins at 40' program. We see age 40 as still the right time to start preparing for retirement," Panji stated during a Bank Mantap media gathering in Ubud, Bali. While ideally, individuals should invest from their first income, he acknowledged that many prioritize other financial goals first, such as purchasing a home, getting married, or supporting a family. Therefore, age 40 presents a realistic milestone for initiating retirement financial strategies.

"If you start at 40 until retirement age, there are still about 18 years. That time is still sufficient to prepare yourself," Panji explained. He advised individuals to build assets that can generate passive income during retirement. Government bonds (Surat Berharga Negara or SBN) are highlighted as a relatively safe investment instrument. Other options include mutual funds or other productive assets, chosen according to individual risk profiles.

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If you start at 40 until retirement age, there are still about 18 years. That time is still sufficient to prepare yourself.

Beyond financial planning, Panji stressed the importance of health protection, as medical costs tend to rise with age. He recommended ensuring enrollment in health insurance programs, such as Indonesia's BPJS Kesehatan, as an affordable option. Bank Mantap also encourages prospective retirees to cultivate additional income sources beyond their monthly pensions, derived from investments or businesses started during their working years. The bank aims to help retirees lead longer, happier, and more prosperous lives through diligent preparation.

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The most straightforward thing if you don't have time to run a business is to invest. One of them is in Government Bonds because the risk is relatively low. Mutual funds can also be an option according to needs.